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Available on DAMM v2
Fee Market Cap Scheduler is a configurable fee reduction mechanism based on price movement (market cap growth) rather than time. Unlike the Fee Time Scheduler which reduces fees over a fixed time period regardless of price action, Fee Market Cap Scheduler only reduces fees when the token price increases.

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How does it work?

Fee Market Cap Scheduler tracks the sqrt price movement from the initial pool price. As the price increases, the fee decreases according to the configured schedule. Fee Market Cap Scheduler requires the following parameters to be configured:
  • Cliff Fee Numerator: The starting fee of the scheduler (e.g., 50%).
  • Number Of Periods: The total number of fee reduction periods.
  • Sqrt Price Step Bps: The sqrt price increase (in basis points) required to advance one period.
  • Scheduler Expiration Duration: The maximum duration after which the scheduler expires and defaults to minimum fee.
  • Reduction Factor: The amount to reduce the fee by per period.
With these parameters, the starting fee will be Cliff Fee Numerator and will reduce based on how much the sqrt price has increased from the initial price. Each time the sqrt price increases by Sqrt Price Step Bps, the fee advances one period and reduces by Reduction Factor. The change in fee can be based on a Linear or Exponential fee curve.

Linear

Linear Fee Market Cap Scheduler
Fee decreases at a constant rate as the token price increases. At the same price point, the fee is higher compared to exponential decay.

Exponential

Exponential Fee Market Cap Scheduler
Fee decreases rapidly at first, then slows down as the token price increases. At the same price point, the fee is lower compared to linear decay.

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Example Configuration

A typical Fee Market Cap Scheduler configuration:
  • Starting Fee: 50%
  • Ending Fee: 0.5% (after 100 periods)
  • Sqrt Price Step: 1% (100 bps) per period
  • Expiration: 24 hours
This means:
  • Fee starts at 50% when the pool launches
  • Each 1% increase in sqrt price reduces the fee
  • After 100% sqrt price increase, fee reaches minimum 0.5%
  • If price doesn’t increase enough within 24 hours, fee defaults to 0.5%

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Simulator

Experiment with different Fee Market Cap Scheduler configurations using the simulator below. Simply clone the spreadsheet and modify the fields to test various scenarios.

Fee Market Cap Scheduler Simulator

Clone this Google Sheet to simulate and experiment with different Fee Market Cap Scheduler configurations.

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Which Launch Pools support Fee Market Cap Scheduler?

Fee Market Cap Scheduler is available as an option for DAMM v2 Launch Pools.
Fee Market Cap Scheduler is mutually exclusive with Fee Time Scheduler and Rate Limiter. Developers must choose one base fee mode for their pool.